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Powell tanked the market but on a very low volume

Powell testified in front of the Congress and tanked the market. But did he?

Maybe he sparked this selling but it was expected. We recovered most of the correction in a fast pace. This recent correction was fast and in one wave and we recovered in the same fast pace… and in one wave.

However, the selling happened in a very light volume:

 
SP500
 

A low volume pullback is a technical correction toward an area of support that occurs on lower-than-average volume. Since the move occurs on low volume, traders often attribute the pullback to weak longs locking in profits rather than a reversal. (Investopedia.com)

If this definition is correct and we are really in a “technical pullback” then this is a profit taking event, healthy for the market, and the uptrend should resume (and since I have a few bullish trades I wish it is what will be happening in the next few days).

Yesterday, I posted “We may see a small pullback to 50 DMA but we most likely continue higher as per my previous estimate…” and it seems that this is exactly what has happened today. In fact, I think it is something what was supposed to happen despite Powell’s testimony.

However, this selling derailed me and I made a few trades out of discomfort. Yes, I collected more premiums but, as I stated, I wasn’t much happy with those trades.

I had to close my trading platform to not get sucked in more trading.

 

 · Trading activity today

 

Although, we collected nice premiums trading today, I am not much happy with it. The trades were driven by emotions and not by calm trading. Followers of our trading and this blog may remember that I strive to trade without emotions and without panicking. I strive to control myself and always be in a “comfort zone”.
 

I must admit, I failed today.
 

Here is a summary of opening and closing trades.
(balance + $435.00)
 

SP500
SP500
 

Let’s see what next few days bring. I assume we may see some downward pressure to continue but more buyers will for sure step in and continue buying. The odds of larger pullback though are very low.
 





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